Petroleum prices raised to ensure uninterrupted fuel supply: Ali Pervaiz Malik

ISLAMABAD (APP) - Federal Minister for Petroleum Ali Pervaiz Malik said the government had taken the difficult decision to increase petroleum prices to ensure an uninterrupted fuel supply in the country amid a sharp rise in international oil prices.

Speaking to the media along with Deputy Prime Minister and Foreign Minister Mohammad Ishaq Dar and Finance Minister Muhammad Aurangzeb, the minister said that when the government last reviewed petroleum prices on March 1, the Platts price of petrol was around $78 per barrel, while the average price of diesel during the previous fortnight was about $88 per barrel.

However, he said international prices have increased sharply since then. As of March 6, the Platts price of petrol had risen to $106.80 per barrel, while diesel prices had climbed to around $150 per barrel.

He said the sudden increase in global oil prices left the government with no option but to raise domestic petroleum prices to avoid any disruption in the country’s energy supply.
Keeping these factors in view, the government decided to adjust the petroleum levy and increase the prices of both petrol and diesel by Rs. 55 per litre.

Malik said diesel consumption is expected to increase in the coming months with the start of the agricultural crop season. He added that diesel is also widely used by public transport, which serves a large portion of Pakistan’s low-income population.

The minister said the government would review the prices again once the international situation stabilizes and would reduce them to help restore the public’s purchasing power.

He expressed hope that ongoing diplomatic efforts by the government will help ease the regional crisis affecting global energy markets.

He said that due to rapidly changing international oil prices, the government has decided to review petroleum prices on a weekly basis instead of the earlier fortnightly mechanism to maintain stability in the supply system.

He said the region is currently facing extraordinary circumstances, and the crisis that began in a neighbouring country has now spread across the region.

However, due to constant monitoring and timely steps by Prime Minister Shehbaz Sharif, Pakistan has increased its petroleum reserves to a safe level in recent weeks, avoiding any immediate risk of a major crisis.

He added that the government ensured the supply of petroleum products according to domestic demand during the past month.

The minister said that during a recent product review meeting, it was decided to maintain supply across the entire petroleum supply chain while keeping available reserves in view.

However, he said that some elements tried to create an artificial shortage by closing petrol pumps to earn illegal profits. Taking strict notice, Prime Minister Shehbaz Sharif has directed provincial chief secretaries to take legal action against those involved.

Due to possible disruptions on the route, the government has started efforts to arrange oil from alternative sources.

He said the prime minister has engaged with the Saudi government, while the foreign ministry has also helped in arranging alternative energy supplies.

He said two Pakistan National Shipping Corporation (PNSC) ships are currently heading towards Yanbu and Fujairah ports to help meet Pakistan’s energy needs.

He added that Saudi Aramco has assured Pakistan that if a large vessel is arranged, it can be loaded at Yanbu and sent to Pakistan’s waters, ensuring a continuous supply of crude oil to local refineries through PNSC feeder ships.